Apple: special event a positive catalyst, Wedbush says
(CercleFinance.com) - Wedbush Securities maintains its "outperform" rating and 245-dollar target price for the Apple share, seeing yesterday's special event as a "positive growth catalyst.
On Tuesday, Apple held a keenly awaited "special event" at its Cupertino headquarters, where the company unveiled a series of new iPhones, the next generation of iPads and Apple Watches, coupled with an Apple TV+ service for 4.99 dollars per month.
According to Wedbush, the pricing of Apple's streaming TV service comes as a "shocker".
"The Street was anticipating a 7.99-9.99 dollars price point as clearly Cupertino is looking for market share coming out of the gates with these surprising price points that we loudly applaud," the broker said.
However, with an installed base of 900 million active iPhones worldwide, Wedbush believes that Apple could have an opportunity to win over 100 million customers on the streaming front in the next 3-4 years.
Netflix currently expects 158 million members.
The Apple stock was up 1.6% in morning trading on Wednesday.
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